Bloomberg ETF analyst James Seyffart has forecasted that demand for spot Ethereum ETFs could reach 20% to 25% of that for Bitcoin ETFs. This prediction stems from Ethereum’s market size, which is roughly 30% that of Bitcoin.
However, Ethereum ETFs have limitations, including the inability to stake and leverage on-chain utility.
Bloomberg ETF analyst James Seyffart said demand for spot Ethereum ETFs could reach 20% to 25% of demand for spot Bitcoin ETFs. This prediction is based on the Ethereum market being approximately 30% the size of Bitcoin. Limitations of the Ethereum ETF include the inability to…
— Wu Blockchain (@WuBlockchain) May 25, 2024
On May 21st, Ethereum recorded an on-chain trading volume of $15.98 billion, the highest since June 13th, 2022. This significant volume coincided with bullish sentiment driven by the anticipation of Ethereum ETFs.
On Tuesday the 21st, ETH recorded an on-chain trading volume of $15.98 billion, marking the highest volume recorded since June 13th, 2022. pic.twitter.com/UK3Syu3pZg
— IntoTheBlock (@intotheblock) May 24, 2024
Before the Ethereum ETF news broke, a whale made a notable move by spending 26.67 million USDT to purchase 8,733 ETH at $3,054.56 per token, resulting in an unrealized profit of approximately $6 million, according to Lookonchain. This aggressive accumulation signaled strong confidence in Ethereum’s future prospects.
Whale Buys Multiple Ethereum Ecosystem Tokens Worth $24.7 Million
Following the SEC’s approval of Form 19b-4 for Ethereum ETFs, this whale continued their buying spree, acquiring $24.7 million worth of various Ethereum ecosystem tokens, amassing an additional unrealized profit of $1.1 million.
Specifically, they deposited 19.75 million USDT to Binance and withdrew significant amounts of multiple tokens: 4.04 million LDO ($9.3 million), 684,364 UNI ($6.7 million), 52,623 AAVE ($5.4 million), 82,041 ENS ($2 million), and 250,969 FXS ($1.25 million).
Before the $ETH ETFs news, a whale spent 26.67M $USDT to buy 8,733 $ETH at $3,054.56 and has an unrealized profit of ~$6M.
After the #SEC approved form 19b-4 for $ETH ETFs, the whale bought $24.7M worth of #Ethereum ecosystem tokens and has an unrealized profit of ~$1.1M.
He… pic.twitter.com/NYg2sYUpAi
— Lookonchain (@lookonchain) May 25, 2024
These strategic transactions highlight a strong belief in Ethereum’s potential, especially with the upcoming ETFs expected to attract more institutional interest. However, the inability to utilize staking and on-chain functionalities remains a notable drawback for Ethereum ETFs.
In summary, Ethereum’s recent trading activities, combined with whale movements and ETF approvals, paint a promising yet cautious picture for the cryptocurrency’s future. The market awaits further developments to gauge the full impact of these ETFs on Ethereum’s long-term performance.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: tongpatong321/123RF // Image Effects by Colorcinch
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : NullTX – https://nulltx.com/whale-activity-surges-amid-ethereum-etf-approval-anticipation/
